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ADMINISTRATION’S BUDGET PROPOSES SEVERAL LIHTC RULE CHANGES

Wednesday, April 10, 2013 - 8:00AM

In its proposed budget for fiscal year (FY) 2014 the Obama administration proposes several changes to the rules governing low-income housing tax credits (LIHTCs). First, the budget proposes allowing states to convert some private activity bond volume cap into authority to allocate additional LIHTCs. Second, to serve households in greater need and to provide incentives for creating mixed-income housing, the budget proposes to allow projects to comply with an income-averaging rule. Third, the budget proposes to change the formula used to determine 9 percent and 4 percent rates to provide a more consistent benefit. Fourth, the budget proposes to add preservation of federally assisted affordable housing to the selection criteria for LIHTC allocation state housing agencies are required to include in the qualified allocation plans (QAPs). Finally, to increase the demand for LIHTCs, the budget proposes to make them beneficial to real estate investment trusts (REITs).

To discuss these proposals, join Novogradac & Company at the Affordable Housing Tax Credit Conference in New Orleans, May 16-17.

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